As a fitness instructor or dietitian, you’re probably all too familiar with the New Year’s rush – the crowded yoga classes, the bumper-to-bumper parking lot, the influx of unfamiliar and eager faces. Last year, Men’s Health reported that “12 percent of new gym members join in January, with some clubs seeing an increase of 30 to 50 percent.”
America’s love affair with the New Year’s Resolution can mean boom time for small-business owners in the weight-loss industry – a market that was forecast to hit $66 billion this year. According to research published in the Journal of Clinical Psychology, 45 percent of Americans “usually” make a New Year’s resolution. You probably don’t have to guess which goal claims the top-ranked position: weight loss.
Like many fitness instructors and dietitians, you may be planning to capitalize on this influx by offering discount programs, New Year’s promotions, and new products and services. Just remember that any changes you make to your business should be followed by a thorough reassessment of your small business insurance plan.
Why Do I Need to Reassess My Business Insurance?
Your small business insurance plan was carefully crafted to match your business’s needs – at the time your purchased your policies. Whenever your business changes, your exposures change, which means your insurance policies may no longer align with your protection needs. This can result in gaps in coverage or extra coverage that your business no longer requires.
Here are some common changes that fitness instructors or dietitians make that could affect their coverage needs:
- New equipment. If you grew your business in the last year and added new equipment to accommodate your additional clients, congrats. The issue is this: the new equipment may pose different or greater risk to your clientele. You’ll need to review your General Liability Insurance policy to make sure your coverage is still adequate. You’ll also need to update your Commercial Property Insurance policy to make sure your newest gear is protected should anything go wrong.
- New products and services. Perhaps you expanded the services you offered in the last year to better meet client needs and tap into new streams of revenue. The change could be something relatively small, like selling new fitness merchandise at your facility. Changes might also be bigger, like incorporating new standards and practices into your dietary programs. But no matter how big or small the update, you should always reevaluate your insurance coverage to see whether your latest offerings are covered. In the first example, you may be opening your business up to a new exposure: Product Liability, which can be addressed with your General Liability policy. In the event of the second example, you may need to make changes to your Malpractice Insurance.
- New employees. If you grew enough in the last year to hire new employees, you’ll definitely need to take a look at your business insurance policies. As you know, most states require employers to carry Workers’ Compensation Insurance in case their employees suffer a work-related injury or illness. Many states require that part-time and temporary employees are also covered under this policy, so you’ll want to make sure you have adequate protection as soon as you hire anyone new.
Luckily, reevaluating your small business insurance plan doesn’t have to be a hassle. Just contact an insureon agent, and you’ll receive step-by-step guidance through your coverage review.